Euro moves higher after PMI report

The euro rose against the dollar on Thursday, supported by the euro zone economic data which showed a better-than-expected performance in October.

Today`s data showed a slight uptick in euro-area business activity this month, where the industrial sector grew at the fastest pace in three months, while growth in the services sector was little changed from a month ago.

The euro-area manufacturing PMI rose to a preliminary 50.7 from 50.3. The service PMI stood at 52.4 while the composite PMI rose to 52.2 from 52.0.

As for Germany, the PMI preliminary PMI data showed mixed readings; the manufacturing PMI rose to 51.8 from 49.9 in September, while the services PMI eased to 54.8 from 55.7.

The euro is expected to remain under pressure in the coming period amid global growth fears. However, a correction is unlikely unless we see solid improvement in the upcoming fundamentals from the 18-nation currency bloc.